ERISA Tips: How Participant Fee Disclosures Are Made

Quite a bit of information goes into a typical fee disclosure, so it’s a good thing the plan sponsor or administrator don’t have to do that part.

The 404(a)(5) fee disclosure is typically put together by the recordkeeper. It’s then sent along to the plan sponsor, who then distributes it to the plan participants.

Important Note: Do not change anything. If any of the information is incorrect or creates other types of red flags, this is something to mention to your recordkeeper or TPA. Just don’t try to amend a fee disclosure – doing so could create fiduciary risk.

Editor’s Note: ERISA Tips is a feature provided with you in mind — to make the newsletter more useful to you! If you have any content for ERISA Tips or the NTSA Advisor that you would like to contribute or suggest, please contact John Iekel, editor of the NTSA Advisor, at [email protected]